Century Pacific to buy Chinese distribution firms for $2.56M
MANILA, Philippines – Century Pacific Food, Incorporated is set to acquire distribution companies in China for $2.56 million in a bid to further expand its branded exports business.
In a disclosure to the Philippine Stock Exchange on Friday, December 23, Century Pacific said it will sign an equity purchase agreement for a 100% interest in the group of entities which currently distribute Century Tuna in China.
"China could be a future growth market for us with its total canned food market estimated to be increasing double-digits annually," said Gregory Banzon, vice president and general manager of Century Pacific.
Since Century Tuna's entry into China during the early 1990s, it has grown its presence to become the country's leading canned tuna brand.
The acquisition is expected to support the expansion of Century Pacific's international branded segment, which is still a small part of its business.
Funding for the transaction will be in cash. (READ: Century Pacific and Singapore's GIC to buy Shakey's Philippines)
Recently, Century Pacific also acquired the license for the Kamayan trademark in North America, one of the top names in the US market for shrimp paste – a popular condiment in Philippine cuisine.
"We look forward to growing our product portfolio and expanding the distribution network in China," Banzon said.
"We are currently studying opportunities to enter adjacent categories to take advantage of this new market," he added.
Previously, the China companies were owned 50% each by Thai Union Manufacturing Company Limited, a wholly owned subsidiary of Thai-listed Thai Union Frozen, and Century Pacific Group Incorporated, the parent company of Century Pacific Food.
It maintains market leadership locally in the canned fish and canned meat segments, while actively growing its presence in canned and powdered milk.
It is also the Philippines' leading exporter of private label tuna and coconut products. – Rappler.com